- Cross-border volume increased 15% globally, reflecting growth in both travel and non-travel related spending.
- Domestic assessments were up 9%, cross-border assessments increased 15%, transaction processing assessments were up 18%.
- EPS was $4.15, including a $0.09 contribution from share repurchases.
- Net income and EPS increased 12% and 14%, respectively, driven primarily by strong operating income growth, partially offset by a higher effective tax rate due to global minimum tax rules.
- Net revenue growth was ahead of expectations, primarily driven by higher-than-expected revenue from FX volatility.
- Operating expenses increased 14%, including a full ppt increase from acquisitions.
- Operating income was up 17%, which includes a 1 ppt headwind from acquisitions.
- Outside the U.S., volume increased 10% with credit growth of 9% and debit growth of 11%.
- Payment Network net revenue increased 13%, driven by domestic and cross-border transaction and volume growth.
- Second quarter net revenues were up 16% and adjusted net income up 12% versus a year ago on a non-GAAP currency-neutral basis.
- Switch transactions grew 10% year-over-year; contactless penetration now represents 75% of all in-person switched purchase transactions.
- Total adjusted operating expenses increased 14%, including a 4 ppt impact from acquisitions, driven by spending on strategic initiatives.
- Value Added Services & Solutions net revenue increased 22%, with acquisitions contributing approximately 4 ppt to this growth.
- Worldwide gross dollar volume (GDV) increased by 9% year-over-year; U.S. GDV increased 6%, impacted by lapping of the Citizens debit portfolio migration.
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- Annualized recurring revenue (ARR) grew 9% to $2.9 billion.
- Capital Access Platforms revenue grew 9% with 6% ARR growth; Financial Technology revenue grew 10% with 11% ARR growth; Market Services net revenue grew 21%.
- Expenses increased just under 8%, primarily due to timing of annual compensation.
- Financial Crime Management Technology revenue grew 20% with 19% ARR growth; Regulatory Technology revenue grew 11% with 10% ARR growth; Capital Markets Technology revenue grew 8% with 9% ARR growth.
- Free cash flow was $467 million; dividends paid were $155 million; $400 million debt was paid down; share repurchases totaled $100 million.
- Gross leverage ratio improved to 3.2x, ahead of target milestones.
- Index revenue increased 17%, driven by a 25% increase in average ETP AUM to $663 billion.
- Nasdaq delivered $1.3 billion in net revenue, a 12% year-over-year increase, with Solutions revenues at $991 million, up 10%.
- Operating income was $721 million, up 16%, and EPS grew 24%.
- Operating margins improved: overall operating margin at 55%, EBITDA margin at 58%, Market Services margin at 63%, Financial Technology margin at 47%.
- Adjusted non-GAAP earnings excluding significant variances were $469 million or $2.07 per share, an 18% increase in EPS over 2024.
- Life insurance sales were strong with record nonqualified sales, but pretax operating earnings declined due to higher mortality.
- Net cash flow was negative $2.6 billion in the quarter, an improvement sequentially driven by positive net cash flow from global institutional clients.
- Non-GAAP operating ROE, excluding AAR, was 14.9%, improving 170 basis points compared to the year-ago period.
- Principal Asset Management sales were $33 billion, up 19% over the prior year quarter.
- Reported non-GAAP operating earnings were $489 million, up 27% year over year, and EPS was $2.16, up 33%.
- Retirement Solutions sales were $6 billion, up 7% year over year.
- Revenue growth, strong margin and expense discipline supported results, alongside a lower effective tax rate and share repurchases.
- Second quarter reported net income excluding exited business was $432 million with minimal credit losses of $17 million.
- Specialty Benefits earnings grew 10% with margin expansion of 100 basis points.
- Total company managed AUM reached $753 billion, a 5% increase over the sequential quarter and 8% over 2024.
- Allowance for credit losses decreased by $11.7 million; provision for credit losses was $6.1 million, including $6 million for net charge-offs and $2.2 million due to macroeconomic factors, offset by releases due to loan growth and recoveries.
- Assets under management increased by $132.42 million to $3.1 billion, driven by higher market valuations and net new assets.
- Classified loans increased by $9.3 million or 4.5% to $215.4 million due to downgrades in CRE and commercial loans, partially offset by $50 million in charge-offs, payoffs, and loans sold.
- Core efficiency ratio was 66.35%, core ROA was 0.94%, and core ROE was 10.49%.
- Gross loans were down by $30 million to $7.2 billion, primarily due to increased prepayments offsetting loan production and some loans originated but not yet funded.
- Net interest income was $90.5 million, up $4.6 million, driven by higher average balances of securities and lower average balances and rates on time deposits.
- Net interest margin (NIM) was 3.81%, higher than projected due to recovery of interest on commercial loans including a fully paid off nonaccrual loan and a fully charged off loan.
- Noninterest income was $19.8 million, while noninterest expense was $74.4 million, higher than the guided $71.5 million due to noncore expenses and increased customer derivatives expenses.
- Nonperforming loans decreased by $41 million due to payoffs, loans sold, paydowns, and charge-offs.
- Pre-provision net revenue (PPNR) was $35.9 million in 2Q '25 compared to $33.9 million in 1Q '25; core PPNR was $37.1 million, up 17.7% from $31.5 million in 1Q '25.
- Provision for credit losses was $6.1 million, down $12.4 million from $18.4 million in the first quarter.
- Return on assets (ROA) improved to 0.90% and return on equity (ROE) to 10.1%, compared to 0.48% and 5.3% respectively in the prior quarter.
- Total assets reached $10.3 billion as of the close of the second quarter.
- Total deposits increased by $151.6 million to $8.3 billion, driven by growth in core deposits and a planned reduction of $51 million in broker deposits.
- Total investment securities were $2 billion, up by $209.2 million, including $120 million mortgage-backed securities classified as trading securities and $87 million available for sale.
Dafinchi